If you want to know who really controls China YuHua Education Corporation Limited (HKG: 6169), then you will need to look at the makeup of its share register. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. Companies that have been privatized tend to have low insider ownership.
China YuHua Education has a market cap of HK $ 12 billion, so we would expect some institutional investors to take notice of the action. Our analysis of company ownership, below, shows that institutional investors bought the company. Let’s take a closer look at what different types of shareholders can tell us about China YuHua Education.
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What does institutional ownership tell us about YuHua education in China?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
As you can see, institutional investors have a large share of China YuHua Education. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see China YuHua Education’s historical revenue and income below, but keep in mind that there is always more to tell.
Hedge funds don’t have a lot of shares in China YuHua Education. Looking at our data, we can see that the largest shareholder is Nai Hai Trust with 57% of the shares outstanding. With such a huge stake in the property, we infer that they have significant control over the future of the business. Morgan Stanley, Investment Banking and Brokerage Investments is the second largest shareholder holding 4.9% of the common stock, and China Asset Management Co., Ltd. owns approximately 3.0% of the shares of the company. In addition, CEO Hua Li owns 0.7% of the shares of the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider property of China YuHua Education
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
We can see that the insiders own shares in China YuHua Education Corporation Limited. Insiders have a significant stake worth HK $ 157 million. Most would see this as a real benefit. If you would like to explore the issue of Insider Alignment, you can click here to see if any Insiders have bought or sold.
General public property
The general public, with a 23% stake in the company, will not be easily ignored. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Owned by a private company
It appears that private companies own 57% of the shares of China YuHua Education. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. To do this, you need to know the 3 warning signs we spotted with China YuHua Education.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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